Student property makes Bangor business £153m
Bangor-based property development firm Watkin Jones has made £153m from one of the biggest student accommodation selloff deals ever seen in the UK.
The business, which is listed on the London Stock Exchange, has completed the forward sale of a portfolio of six schemes to institutional investor Europa Generation for a gross development value of £165m. Following net funding costs, Watkin Jones will receive £153m.
Five of the property schemes are scheduled for completion in September next year.
The portfolio consists of 1,691 student accommodation beds and 14 residential units, which all have planning consent granted. The properties are: Caledon House, in Aberdeen, with 199 student bedrooms, which is due for completion in September 2018.
Bailey Fields, in Sheffield, with 543 student bedrooms, which is due for completion in September 2018.
Market Street, in Newcastle, with 225 student bedrooms, which is due for completion in September 2018.
Midlands Road, Bath, with 108 student bedrooms, which is due for completion in September 2018.
Oxford House, Bournemouth, with 486 student bedrooms, which is due for completion in September 2018,
Between Towns Road, Oxford, with 144 student bedrooms, which is due for completion in September 2019.
Watkin Jones CEO Mark Watkin Jones, said: “We are delighted to announce that we have successfully completed the sale of a portfolio of six student accommodation developments to Europa Generation for a gross development value of £165m.
“The group has now forward-sold all of its developments that are planned for completion by September 2018. In addition, with the Between Towns Road, Oxford, development for delivery in 2019, the number of developments forwardsold for delivery before September 2019 has moved to 21, which represents 6,794 beds.
“This sale demonstrates that the group continues to benefit from having very strong and growing relationships with institutional investors, as well as our ability to provide excellent earnings visibility for our shareholders.”
Last year the company sold a yetto-be-completed student accommodation scheme in the centre of Cardiff to an undisclosed investor.
The scheme, close to Admiral’s headquarters building on Bridge Street, will have 472 student accommodation rooms. It is due for completion in August next year, ahead of the 2018-19 academic year.
Since 1999, Watkin Jones has delivered over 31,800 student beds across 98 sites, making it a key player and leader in the UK purpose-built student accommodation market. In addition, Watkin Jones has been responsible for more than 50 residential developments, ranging from starter homes to executive housing and apartments.
It floated on London’s Alternative Investment Market last year.